The Dominican government, through the Ministry of Finance, has issued sovereign bonds for $ 2.5 billion on the international market, in accordance with the provisions of the general state budget for 2021, approved by the National Congress.
This transaction was structured in two tranches, the first, a reopening of an existing bond for an amount of USD 1,000 million with maturity in 2030, at a yield of 3.87%, representing a reduction of the cost for the country, in this term, of 0.63%.
The second tranche is a new $ 1.5 billion bond, due in 2041, with a yield of 5.3%, this being the first sovereign issue in Latin America and emerging markets with a maturity of 20 years, details a statement from the Treasury.
This number, guided by the Minister of Finance and the Deputy Minister of Public Credit, Jochi Vicente and María José Martínez, had a historical demand of 10 billion USD, ie 4 times the required amount.
Through This transaction, which was recommended by Citibank and JP Morgan, reduced the average cost of non-financial public sector debt by 9 basis points., and the average lifespan ranged from 12.0 to 12.2 years.
“The request we had is a clear sign of the trust and credibility that investors in our country and the Government have, due to the responsible management of state finances by the current administration,” the minister stressed. ¨
The Deputy Minister of Public Credit explained that they took advantage of the favorable financial conditions that were presented this week to ensure a significant part of the external financing stipulated in the general state budget, to cover this year’s needs in foreign currency.